1. Sotiris Koutsomitros 1 Common agricultural policy 2014 – 2020 Impacts on horticulture Sotiris Koutsomitros Agricultural-Engineer MSc Environmental Engineer MSc Directorate of Agricultural Policy Min. Rural Development & Food

2. Sotiris Koutsomitros 2 Contents Status Quo The configuration of the CAP for the next period (2015-2020) Direct Payments as a safety net Focusing on rural development Effects on horticulture

3. Agricultural income index exercise Values 2012 and 2013, in mio Euro Itemarea (Ha) Production (tn) Value 2012 Value 2013 CEREALS (including seeds) 990.2904.284.214 - value at producer prices 1011,391053,75 INDUSTRIAL CROPS434.6181.447.245 - value at producer prices 543,84640,86 FORAGE PLANTS - value at producer prices 459,60449,86

4. Itemarea (Ha) Production (tn) Value 2012 Value 2013 VEGETABLES AND HORTICULTURAL PR/cTS 93.2203.228.000 - value at producer prices 1514,351496,80 FRUITS289.2382.866.927 - value at producer prices 2036,211804,29 OLIVE OIL829.6951.793.522 - value at producer prices 739,56728,81 CROP OUTPUT (01 TO 09) - value at producer prices2.637.06113.619.9086514,446464,26 Agricultural income index exercise

5. ItemValue 2012Value 2013 AGRICULTURAL GOODS OUTPUT - value at producer prices9364,229199,55 TRANSFORMATION OF AGRICULTURAL PRODUCTS - value at producer prices780,29780,33 OUTPUT OF THE AGRICULTURAL ‘ INDUSTRY ’ - value at producer prices10549,6610386,20 GROSS VALUE ADDED AT BASIC PRICES5499,885318,12 FIXED CAPITAL CONSUMPTION 2021,92 2205,90 NET VALUE ADDED AT BASIC PRICES3477,963112,23

6. Fruit & vegetables AREAS (Ha) Production (tonnes) OPEN AIR VEGETABLES 90.1332.932.759 GREENHOUSE VEGETABLES 3.435266.239 FRUITS289.238 2.866.927 OLIVE OIL829.6951.793.522

8. Sotiris Koutsomitros 8 Direct Payments : Status Quo Direct paymentsMio EUROPercentage Coupled payments livestock351,46% Coupled payments crops311,30% Special payment for cotton1867,78% Single payment on land2.04985,73% Special entitlements893,72% total2.390100,00% Livestock19% Crops81%

9. 9 Convergence in the EU

10. Sotiris Koutsomitros 10 Legal texts Direct Payments Rural development Common market organisation Horizontal Regulation (common obligations for all regulations: cross-compliance, IACS, Advice, penalties and sanctions)

11. New Architecture for Direct Payments Cross Compliance or Basic Payment New rights in 2015 Minimum agricultural activity National or regional flat rate per hectare Regions according to objective criteria Greening Crop rotation (>10Ha) permanent pasture eco focus Area (>15Ha) 30% either by region or by the national ceiling Young Farmers Up to 2% < 40 years For 5 years from the start of activity Small Farmers Simplify applications and controls up to 1250 €/year direct entry in 2015 Greece: 350.000 farmers (50%) Coupled Payments Up to 8% or 10% Natural Constraints areas Up to 5% Active Farmer Redistributive Payment

12. Sotiris Koutsomitros 12 Payments On the field

13. Sotiris Koutsomitros 13 Active farmer  Non-agricultural activities are not the main economic activities of the company (direct payments at least 5% of total income or agricultural income at least 1/3 of total income)  Observes the minimum activity (fixed by the MEMBER STATE) on the field  Pastures : grazing density?  Arable: ploughing?  Orchards: Pruning or weed control???

14. Sotiris Koutsomitros 14 Small Farmers Total payments in 2015 up to 1250 €/year Exemption from greening and cross compliance Obligations: Preservation of agricultural land and their nature Entry only in 2015 – farmer's decision to Exit at any time Major reduction of administrative burden for Greece (350,000 holdings)

15. Sotiris Koutsomitros 15 Greening 30% for 3 mandatory measures depending on the type of land, with a penalty of at least 45%: 1. Maintain permanent pasture 2. At least 2 crop rotation with maximum 75% coverage per cultivation in holdings with arable land from 10Ha and over 3. Eco focus area 5% MORE THAN 15Ha, including elements of the landscape for arable land Organic farming = green EXCLUSIONS: legumes, rice, plantations

16. Sotiris Koutsomitros 16 Young Farmers 25% bonus up to 25 hectares 40 years age Up to 5 years from the establishment of the holding Up to 2% of the budget 1% covers 8800 young farmers

17. Sotiris Koutsomitros 17 Natural Constraints areas – Optional – up to 5% of the national ceiling – Target all or some of the areas with natural handicaps as defined by Member States on the basis of article 33 (1) of the new Rural Development (not necessarily mountainous and disadvantaged) – annual payment per hectare – Useful for replenishing income for some groups of farmers – Possibility to transfer funds between the pillars

18. Sotiris Koutsomitros 18 Redistributive Payment Optional for Member States, up to 30% of the national ceiling Cut from everyone and benefit the «first» hectares as additional value First hectares: up to 5 hectares for Greece In Greece the application may benefit part time farmers at the expense of full time farmers

19. Sotiris Koutsomitros 19 Rural development measures Setting up producer groups Short supply chains Farm advisory Specific subprogram for small farms and Knowledge and information transfer actions risk Insurance management Innovation Environment

20. Sotiris Koutsomitros 20 Basic and Green payments New entitlements for 2015 : 1.1 entitlement per hectare 2.Either Greece as 1 region, or, Separation of pastures and croplands Pastures are common land and much cheaper than crop land 3.Convergence to a flat rate per hectare of the same region in 2019 4.The value will depend on the decision for the regions 5.National Reserve (newcomers and new farmers) 6.All farmland will be covered 7.More vegetables and fruits covered

21. Sotiris Koutsomitros 21 Coupled payments Deficit in the trade balance (meat) Food security (cereals) Sustainability of the sector if dependant on primary production (sugar) Complementarity of actions (feed stuff)

22. Sotiris Koutsomitros 22 Direct payments for development Basic Payment and Greening = guaranteed minimum income Income Maximization from the market and economies of scale with collective organization (groups/chain) Minimizing trade deficit through coupled payments insert new capacity by strengthening farmers' increased effectiveness Internal convergence = mitigation effects and Rural Development Measures reaction time for actual development

23. Impacts and trends on horticulture Market orientation Increase of land with vegetables Fruit increase? Direct Payments = safety net Target: Added market value Cost limitation through collective actions Logistics cut Market orientation – Market access

24. Sotiris Koutsomitros 24 Thank you!!! Info http://www.minagric.gr/index.php/el/the-ministry-2/agricultural- policy/koinagrotpolitik/1194-kapfuture http://ec.europa.eu/agriculture/cap-post-2013/legal- proposals/index_en.htm http://www.agrotikianaptixi.gr/rdpost2013/